Securities Investor Protection Corporation
SIPC helps recover eligible missing customer cash and securities when a member brokerage fails financially. Membership is a separate protection signal, not SEC registration, FINRA authorization, or a guarantee against investment losses.
Trust tier
Protection scheme, not a trading license
Company registration, AML registration, or protection-scheme membership is not a broker trading license. Read the specific scope and eligibility rules.
Brokerage protection-scheme membership. It is not a license to offer securities, forex, futures, or crypto trading.
SIPC states a limit of $500,000 per customer, including a $250,000 limit for cash, subject to SIPA eligibility and account-capacity rules. It protects custody, not market value.
North America
What it means
How to read SIPC regulation
- Check whether the legal entity holding your assets is a SIPC member.
- Eligible non-US customers are treated the same as US customers of a SIPC member.
- Protection can help restore missing eligible cash and securities in a member liquidation.
Limits
What this signal does not guarantee
- It does not cover market losses, bad investment advice, or guarantee the value of securities.
- It does not automatically protect forex trades, commodity futures, or ineligible crypto assets.
- It does not extend to every affiliate of a member brokerage or every cash-sweep destination.
Verify
How to check this license
Search the exact carrying broker or legal entity in the SIPC member list.
Compare the account statement and custody agreement with that member entity.
Read the SIPC eligibility rules for the asset and account capacity; check bank sweeps separately for FDIC coverage.
Red flags
When to be careful
- SIPC is presented as a trading regulator or a guarantee of investment returns.
- A non-member affiliate advertises group membership without identifying the carrying member.
- Protection limits are described as unlimited or as covering all forex and crypto losses.
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Important disclosure
Broker research, not investment advice
Availability, fees, investor protection, and regulation can vary by country and legal entity. Verify the broker and regulator details directly before opening an account.